What You Need To Know About Navigating Contract Challenges In 2024

There is absolutely no doubt that collaboration is crucial to business success in today’s world. That obviously applies to work done within organisations.

However, effective collaboration between different organisations can be incredibly beneficial, too. In fact, some of the biggest brands in the world have seen significant marketing and revenue boosts through innovative collaborations with other brands.

One thing that’s common across successful collaborations is a detailed, watertight contract. Such contracts not only ensure both parties understand and stick to their particular roles, but also play an important role from a legal and regulatory compliance perspective. Thanks to last year’s passing of the Nigeria Data Protection Act 2023—which aims to protect the personal data of individuals and organisations—the latter now becomes ever more critical.

With that in mind, how can Nigerian businesses build effective collaborations in 2024 while navigating contracting challenges? Furthermore, how can they do so in a way that ensures they’re fully compliant with the law and regulators?

The benefits of brand collaboration

A 2021 study found 71% of consumers enjoy co-branding partnerships. There are also significant marketing and awareness benefits to successful collaborations. One study, for example, found brand collaborations can be up to 25 times less expensive than a dedicated digital advertising campaign. Brand collaborations can also be incredibly useful in helping brands attract new customers, generate publicity, and enter new markets. They are, in other words, something businesses of all sizes can benefit from and should explore in 2024.

Dotting the “I’s” and crossing the “T’s”

As with any relationship, however, things can go wrong if both parties aren’t absolutely clear on their roles and responsibilities, which is what makes contracting so important. In some cases, contract negotiations can take a long time and get expensive if the two companies involved rely on outside legal counsel to finalise the agreement.

Fortunately, with the right technology in place, the entire process can be a lot simpler and streamlined. Of course, not all contracting software are created equal. Ideally, businesses should look to use contracting software that streamlines the contracting process from authoring and approvals to negotiations, execution, and post-execution management.

Good contracting software can also help an organisation create risk-proof contracts, using templates that cover everything from non-disclosure agreements (NDAs) to master service agreements (MSAs). This additionally helps ensure there is consistency across all contracts. If that contracting software fits into a well-designed productivity suite, its data can also feed into the overview that allows organisations to check on things such as milestones, clauses, obligations, counterparties, performance, and other general contract attributes.

Regulatory wrangles

Another essential attribute to look for in contracting software is whether they help organisations comply with all the laws and regulations in any geography they operate in. After all, if the clauses contained within a contract don’t meet legal and regulator compliance, it’s effectively worthless. There are further compliance dangers if there isn’t an accurate view of all versions of a contract or if roles and permissions aren’t clearly defined.

In Nigeria, that kind of compliance is only going to become more important. With the passing of the Nigeria Data Protection Act 2023 in June last year, organisations will have to do everything in their power to protect consumers’ and other businesses’ information. Having oversight and control of the entire contracting process makes that much simpler.

Good contracts benefit everyone

Ultimately, for Nigerian businesses to see the full benefit of collaborations, they must ensure their contracting is watertight and fully compliant. For that to happen, they must choose the right contracting software.